Oil prices slid further to below $80 a barrel, marking a three-month low on Tuesday on optimism over the expected reopening of the Strait of Hormuz after a peace deal between the U.S. and Iran.
Brent North Sea crude, the international benchmark, dropped 3.8% to $79.99 a barrel, dipping under $80 for the first time since early March.
The main U.S. oil contract, West Texas Intermediate (WTI), slid 3.9% to $77.61 a barrel.
U.S. President Donald Trump said the Strait of Hormuz would "completely open" once Washington and Iran sign their peace agreement on Friday in Switzerland.
Iran had effectively halted tanker traffic through the vital waterway in retaliation for U.S. and Israeli strikes launched in late February, choking off oil and gas traffic and sending crude prices skyrocketing.
"Traders are pricing in the reopening of the Strait of Hormuz as the most immediate and positive result of any peace deal," said David Morrison, senior market analyst at broker Trade Nation.
While Iranian officials have threatened to impose tolls on ships passing through the crucial channel, "as far as oil traders are concerned, they see a market which is loosening up at last," Morrison said.
